Chart Of Account

Why the need for an effective Chart of Accounts in the System ?

•It is the heart of the system into which all modules and interfaces flow.

A chart of account is a listing of the names of the account that a company has identified and made available for recording transactions in its general ledger. A company has the flexibility to tailor its chart of accounts to best suit its needs, including adding accounts as needed.

Within the categories of operating revenues and operating expenses, accounts might be further organized by business function (such as producing, selling, administrative, financing) and/or by company divisions, product lines, etc.

A company's organization structure can serve as the outline for its accounting chart of accounts. For example, if a company divides its business into ten departments (production, marketing, human resources, etc.), each department will likely be accountable for its own expenses (salaries, supplies, phone, etc.). Each department will have its own phone expense account, its own salaries expense, etc.

Sample Chart of Accounts For a Large Corporation

Industry Considerations

•Manufacturing/Services
XX XXX XXXX XXX XXX XXX
Company Cost Centre Account Product Product Line Sub Account

•Distribution (News)
XX XXXXXX XX XXX XXXX
Division Account Region Story Distribution

•Projects
XXX XXXXX XXX XXXX XX
Company Account Department Project Project Type